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Macroeconomic outlook report: Spain

First quarter of 2020

During the first quarter of 2020, the year-over-year growth of Spanish GDP decreased by 5.88 p.p. down to -4.10%. Regarding the labor market, the unemployment rate increased by 0.63 p.p. compared to the previous quarter, to 14.41%. On the other hand, employment registered a year-over-year growth of 1.08% during this quarter, 0.98 p.p. lower than in 4Q19. In terms of prices, inflation stood at 0.60%, after a quarterly increase of 0.16 p.p. Regarding the exchange rate, the euro depreciated against the dollar in 1Q20, and stood at an average rate of 1.10 $/€.

Macroeconomic Overview

    • In 1Q20, the Spanish economy registered a y/y growth rate of -4.10%, which meant a deceleration of 5.88 p.p. with respect to 4Q19.
    • Regarding the external sector, there was a contraction in year-on-year growth of 0.86 p.p., due to a greater contraction in exports (-9.45 p.p.) than in imports (7.57 p.p.). Domestic demand fell by 4.98 p.p. compared to 4Q19, down to a year-on-year growth rate of -3.71%.
    • The unemployment rate stood at 14.41% during the first quarter, after an increase of 0.63 p.p. over the previous quarter, while the year-over-year growth rate of employment stood at 1.08% after decreasing by 0.98 p.p.
    • The euro depreciated against the dollar during 1Q20 when compared to 4Q19, standing at an average exchange rate of 1.10 $/€.
    • With regard to inflation, in 1Q20 CPI growth stood at 0.60%, after a quarterly increase of 0.16 p.p.

    For more information, click here to access the executive document in pdf (only avalaible in Spanish).

    © GMS Management Solutions, S.L., 2020. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.